asset management company Ark Investment expressed belief in the potential for change in Ethereum ETH/USD A network for the financial services industry.
what happened: on tuesday, Cathie Wood The company's influential founder shared a research paper explaining why he uses Ark Invest on X believes that Ethereum and its staking yield will play an important role in decentralized finance (DeFi).
The paper highlighted Ethereum’s status as an “institutional-grade asset” with the potential to generate yield.
“Our research suggests that ETH, as an asset, is beginning to develop attributes similar to U.S. Treasury securities in the digital asset space,” the paper reads.
Ark Invest added that ETH and its staking yield are becoming a benchmark, or reference indicator, within the digital asset industry, used to evaluate other layer 1s, risk profiles and returns.
The paper further noted that the network generates “meaningful value” thanks to its large market capitalization and millions of monthly active users.
According to Staking Rewards, approximately 34,223,000 ETH has been staked on the network as of this writing, representing over 28% of the asset's circulating supply. The network-wide average annual yield was 3.46%.
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why is it important: The latest support reflected Wood's previous bullish predictions on Ethereum. Earlier this year, at the Big Ideas investor conference, Wood said that Ethereum's market capitalization could reach $20 trillion by 2032, or more than $166,000 per token. I expected it.
Interestingly, Ark Investments has backed away from launching an exchange-traded fund (ETF) that invests directly in Ether, choosing to focus on spot investing. Bitcoin BTC/USD ETFs, that is, ARK 21Shares Bitcoin ETF ARKB.
Nevertheless, Wood's recent tweets suggest that Ark Invest recognizes its potential to reshape the financial services industry and continues to explore ways to introduce Ethereum technology to investors. There is.
price action: At the time of writing, Ether was unchanged at $2,614.69, up just 0.19% in the past 24 hours, according to data from Benzinga Pro.
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